Silicon Graphics Inc. will work with Intel Corp. to incorporate Intel's processors into its systems, the company announced today.

At a press conference in New York, Silicon Graphics CEO Rick Belluzzo outlined the company's "strategic business plan," which focuses on visual computing and high-bandwidth systems. The company will concentrate on six industries: communications, energy, entertainment, government, manufacturing and science, he said.

The Intel (INTC) deal calls for Silicon Graphics (SGI) to use Intel's IA32 technology in its workstations. Silicon Graphics will also port its 64-bit IRIX operating system to Intel's IA64 platform, code-named Merced.

The two companies have also agreed to a joint marketing pact to push the Silicon Graphics workstations featuring Intel processors and Windows NT.

Also today, Silicon Graphics announced that its MIPS Technologies Inc. subsidiary will be spun off as a public company. MIPS designs and licenses microprocessors for the consumer and embedded markets, including game machines, set-top boxes and handheld devices.